South Africa and Brazil who bric collapse
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Local time on December 16, 2015 in Johannesburg, South Africa, South Africa's President Jacob zuma after continuous firing two finance minister, thousands of people demonstrated for Mr Zuma to resign.Photo: China's vision
Bric countries like South Africa and Brazil, one is the continent of Africa's most developed economies, one is Latin America's
biggest economy, is also facing a similar problem: economic deterioration under rating agencies downgraded, dominated by the boiling calls for leaders to step down, etc.The brics light is dim, the question now seems to be who will collapse in the first place.
On Wednesday (16) mass protests broke out in South
Africa.Tens of thousands of protesters holding "zuma must go", "to say no to corruption" and other slogans, appear in Cape Town, Johannesburg, bielefeld tuo, and other cities.After three days, a similar protest in Brazil, 39 cities, nearly one hundred thousand people took to the streets.
Since 2010, South Africa's economic growth slowed to 2% in the following, the unemployment rate over 25%, the rand has shrunk by 60% against the dollar.South Africa's economy shrank by 1.3% year-on-year in the second quarter, and preliminary data show that in the third quarter GDP rose only slightly by 0.7%.Brazil's economy into the worst recession in 25 years, GDP in the third quarter year-on-year fall by as much as 4.5%. The two countries had already suffered a slump in commodity and the federal reserve to raise interest rates expected, has long been a government mismanagement and corruption is more depressing international investor confidence, for their
Over the past week in South Africa's President, have appointed two Treasury secretary, change of notable has been interpreted to mean trying to let the Treasury this influential, has not yet corrupt government departments involved in politics.The consequences are obvious: last Thursday and Friday two days, the South African rand fell sharply, and the Johannesburg stock exchange bank shares fell 20%.
For Brazil, recent government adopted the permalink for its economic policy for the plight of today.13 as the Wall Street journal published a commentary says, the country's highly practiced since the last century 60 s failed to trade protectionism, but both President rousseff and her predecessor, are not willing to undertake to the lack of competitiveness of political risk brought by the enterprise to be eliminated, so that "Brazil is under national industrial plan does not bring the effects of growth and prosperity".
At the same time, corruption significantly eroded the government's credibility between the two countries.Ms rousseff's government many politicians were involved in the Brazil's national oil company (Petrobras) corruption scandals;Mr Zuma Revelations zuma spent huge amounts of public money to
build homes, even before the president-elect has corruption charges.Both ms rousseff and Mr Zuma, are facing demands can remain in power.The former's approval rating has fallen to a record low single digits;The Afrobarometer survey shows, the past south africans have fallen by almost half of Mr Zuma credibility.
Since December, the international rating agency standard &poor's and fitch have lowered the credit rating of South Africa, the rating given only a taller than junk.Also in December, moody's will than Brazil's credit rating to junk only a high, while fitch following their relegation, soon will be Brazil's credit rating to junk.
Due to South Africa and Brazil are two countries with large current account deficits, so international credit rating agency downgrade or more severe pressure to them.
Jp Morgan chase(65.54, 1.14, 1.77%), according to data from the investigation of the market of South Africa's 2016 economic growth forecast from 2.3% to 1.6%.The pace of economic deterioration in Brazil even faster: the market is expected to the country's economy will shrink by 1.2% in 2016, is the expected growth of 0.2%.